{
  "id": 19134460,
  "title": "India's sugar mills face margin squeeze",
  "url": "https://urgent.news/2026/11/09/indias-sugar-mills-face-margin-squeeze",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-09T10:04:38.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/news/economy/agriculture/indias-sugar-mills-face-margin-squeeze-as-ethanol-production-restrictions-and-rising-costs-hit-profitability-crisil/articleshow/135677857.cms"
  },
  "original_language": "en",
  "account": "India's sugar industry is facing a challenging fiscal year due to a combination of factors threatening profit margins, according to Crisil Ratings. With ethanol production from sugarcane feedstocks restricted and sugar procurement costs rising, operating margins are forecast to fall by 140-160 basis points to approximately 6%. This comes despite relatively strong sugar prices offering some revenue support. Crisil's assessment of 55 sugar mills, which account for about a quarter of the country's sugar production, reveals mounting pressure on both earnings and credit profiles. The government's decision to limit ethanol production from sugarcane-based feedstocks to C-heavy molasses has weakened revenue streams, as ethanol from these sources no longer provides significant revenue. Rising cane costs and the growing reliance on lower-margin ethanol sales further strain profitability. Higher sugar prices may not fully offset the loss of higher-margin ethanol volumes and the increased cane costs, limiting the impact of price increases. Additionally, an expected decline in sugar production due to weather-related issues and potential import requirements could tighten domestic supplies. While steady demand and firm realizations are projected to support a 4-5% growth in operating income this fiscal year, higher revenues may not translate into better earnings due to the pressures on margins. The industry's ability to recover in fiscal 2028 will depend on sugar prices relative to cane costs, ethanol pricing, and monsoon performance, which will influence earnings recovery and credit profiles.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}